Wise Payments Ltd, a London-based fintech firm, plans to resume accepting new customers in India for overseas remittances. This move follows a recent pause to upgrade its infrastructure. The company aims to capture a larger share of India's $32 billion remittance market.

Resuming Client Onboarding

Wise halted new customer registrations while it revamped its systems after receiving a license from the Reserve Bank of India (RBI). This license allows customers to send higher amounts of money abroad. Shrawan Saraogi, Asia Pacific head of expansion at Wise, stated that the company intends to restart onboarding new clients in the coming months.

In India, major banks such as ICICI Bank Ltd and State Bank of India currently dominate the outbound remittance market. These banks benefit from strict capital controls, outdated international payment systems, and high taxes, which limit the influence of fintech competitors.

Wise plans to start signing up new customers in India for overseas remittances after a pause, eyeing a bigger slice of a $32 billion market https://t.co/PTsK7kpn5r

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India’s $32 Billion Remittances

According to RBI data, Indians sent approximately $32 billion abroad in the year ending March 2024, up from $27 billion the previous year. These remittances were mainly for travel, education, and family support.

Wise has been facilitating outbound payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term from India since 2020 through a partnership with a bank. Previously, these transactions were capped at $5,000 each, a restriction that no longer applies. Before accepting new users under the updated regulations, Wise is upgrading its systems to meet tax and reporting requirements as stipulated by the Authorized Dealer 2 license. India imposes a 20% tax on most outbound remittances by individuals.

The retail digital payments market in India is expected to grow to $7 trillion by 2030, up from $300 billion in 2018, according to a Kearney and Amazon Pay study. Digital transactions represented about 46% of all payments in India in 2022, according to government data.

This significant market potential is why global fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term firms like Wise and Revolut are prepared to navigate the complex regulatory environment in India. Revolut received a Prepaid Payment Instruments license from the RBI in April, as confirmed by the firm.